What Will Medicare Cost in 2020?

Medicare rate increases for 2020 won’t be announced until late in 2019. But it’s never too early to start planning for your potential 2020 Medicare costs, such as premiums, deductibles and copayments.

If you wish to get a head start on your health care budgeting for 2020, the information below may be able to help.

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Is Medicare going up in 2020?

The cost of Medicare premiums and deductibles typically increase each year, though it’s hard to predict by how much.

It's important to consider rate increases as you prepare to enroll in Medicare for the coming year (even if you keep the same Medicare coverage going into next year).

When looking ahead to Medicare rate increases for 2020, these are two of the main types of costs to consider.

  • Medicare premiums
    A premium is a monthly amount that you pay to belong to a Medicare plan.

  • Medicare deductibles
    The deductible is the amount of money that you must pay out of your own pocket for covered services before your plan coverage begins.

Different parts of Medicare have different premiums and deductible amounts.

Some Medicare Advantage plans (Medicare Part C) offer $0 premiums. To find out if any $0 premium Medicare Advantage plans are available where you live, call to speak with a licensed insurance agent at TTY Users: 711 24/7.

How much did Medicare Part A premiums go up in 2019?

Most people do not pay a premium for Part A, but those that do must pay either $240 or $437 per month in 2019, depending on how many years they paid Medicare taxes.

The follow chart shows how the Medicare Part A premium has changed in recent years.

  • 2018 = $232 or $422 per month
  • 2017 = $227 or $413 per month
  • 2016 = $226 or $411 per month
  • 2015 = $224 or $407 per month
  • 2014 = $234 or $426 per month

Projected Medicare Part A premium increase for 2020

While the 2020 rate increase for the Part A premium has not yet been released, Part A premiums may go up slightly given the recent history of increases.

It’s important to remember that very few beneficiaries pay a premium for Part A.

How much did the Medicare Part A deductible go up in 2019?

The Part A deductible does not operate on an annual basis, but rather it is based on benefit periods.

A benefit period begins the day you are admitted to a hospital or skilled nursing facility as an inpatient, and it ends when you have not been an inpatient for 60 consecutive days.

For 2019, the Medicare Part A deductible is $1,364 per benefit period.

This chart shows how the Part A deductible has changed in recent years.

  • 2018 = $1,340 per benefit period
  • 2017 = $1,316 per benefit period
  • 2016 = $1,288 per benefit period
  • 2015 = $1,260 per benefit period
  • 2014 = $1,216 per benefit period

Projected Medicare Part A deductible increase for 2020

The 2020 Part A deductible amount won’t be announced until fall 2019. The recent rate increases listed above can give an early indication that a similar increase may be in store.

Did the Medicare Part B premium go up in 2019?

The standard Medicare Part B premium for 2019 is $135.50 per month.

Some people with higher incomes may pay more for Medicare Part B. This increased amount is called the Income-Related Monthly Adjusted Amount, or IRMAA.

Medicare Part B Premiums

2017 Individual tax return

2017 Joint tax return

2017 Married and separate tax return

2019 Part B premium

$85,000 or less

$170,000 or less

$85,000 or less

$135.50

More than $85,000 and up to $107,000

More than $170,000 and up to $214,000

N/A

$189.60

More than $107,000 up to $133,500

More than $214,000 up to $267,000

N/A

$270.90

More than $133,500 up to $160,000

More than $267,000 up to $320,000

N/A

$352.20

More than $160,000 up to $500,000

More than $320,000 up to $750,000

More than $85,000 up to $415,000

$433.40

More $500,000

More than $750,000

More than $415,000

$460.50

The Part B rate increases in recent years may be able to help you anticipate what to expect for the 2020 standard Part B premium.

  • 2018 = $134 per month
  • 2017 = $134 per month
  • 2016 = $121.80 per month
  • 2015 = $104.90 per month
  • 2014 = $104.90 per month

Projected Medicare Part B premium increase for 2020

The 2019 Social Security and Medicare Trustees’ Report projected the standard Part B premium to increase to $144.30 per month in 2020.1

The IRMAA surtax has changed a few times since its introduction in 2007, and an additional income bracket was added for 2019. Any change to the standard Part B premium in 2020 is likely to drive an increase for the IRMAA as well.

How much did the Medicare Part B deductible go up in 2019?

The Medicare Part B deductible in 2019 is $185 per year.

Here’s a look at how the Part B deductible has changed in recent years:

  • 2018 = $183 per year
  • 2017 = $183 per year
  • 2016 = $166 per year
  • 2015 = $147 per year
  • 2014 = $147 per year

How much will the Medicare Part B premium cost in 2020?

The Medicare Trustees’ Report projects the Medicare Part B deductible will go up to $197 per year in 2020, a $12 increase from 2019.1

What will Medicare Part C cost in 2020?

Medicare Part C plans (also called Medicare Advantage plans) are sold by private insurance companies, so plan premiums, deductibles and other costs can vary.

Despite regular increases in Original Medicare (Part A and Part B) costs, Medicare Advantage premiums have decreased in recent years.

The Centers for Medicare & Medicaid Services (CMS) projected the average Part C premium to decrease by 6 percent in 2019, marking the fourth consecutive year the average premium has gone down.

Increasing competition may have contributed to falling premiums. The number of Medicare Advantage plans available in 2019 — 2,734 — represents an 18 percent increase 2018 and the highest number of plans since 2009.2

It’s possible that the competition within the Medicare Advantage market will keep Medicare Advantage plan premiums lower.

As mentioned above, many Medicare Advantage plans feature $0 premiums.

Will Medicare Part D costs go up in 2020?

Medicare Part D plans provide coverage exclusively for certain retail prescription drugs.

Medicare Part D plans are sold on the private market. Premiums for Part D plans have been on the decline in recent years. The average Part D premium is around $41 per month in 2019.3

Part D plans use an IRMAA surtax for beneficiaries who earn a higher income.

Medicare Part D IRMAA
2017 Individual tax return 2017 Joint tax return 2017 Married and separate tax return 2019 Part D premium

$85,000 or less

$170,000 or less

$85,000 or less

Your plan premium

More than $85,000 and up to $107,000

More than $170,000 and up to $214,000

N/A

You plan premium + $12.40

More than $107,000 up to $133,500

More than $214,000 up to $267,000

N/A

Your plan premium + $31.90

More than $133,500 up to $160,000

More than $267,000 up to $320,000

N/A

Your plan premium + $51.40

More than $160,000 up to $500,000

More than $320,000 up to $750,000

More than $85,000 up to $415,000

Your plan premium + $70.90

More $500,000

More than $750,000

More than $415,000

Your plan premium + $77.40

How are Medicare Part D plan costs changing in 2020?

Although Part D plans are sold by private insurance companies, they must abide by certain cost rules determined by the CMS.

The CMS recently announced new rules for certain 2020 Part D costs:4

  • The maximum annual Part D plan deductible will be $435 in 2020 (a $20 increase from the 2019 maximum Part D deductible amount of $415).

  • The Part D plan initial coverage limit will be $4,020 in 2020.

  • Once you and your Part D plan have spent $4,020 on prescription drug costs in 2020, you will enter the Part D donut hole coverage gap. During the coverage gap, your plan limits how much it will pay for your prescription drug costs.

    While you are in the donut hole in 2020, you will pay 25 percent of the cost of brand name drugs and generic drugs until you reach the catastrophic coverage stage.

  • Once you reach the maximum annual out-of-pocket spending limit of $6,350 in 2020, you enter the catastrophic coverage stage. In this coverage stage, you’ll only pay a small coinsurance or copayment amount for your covered drugs.

How will Medicare Supplement Insurance change in 2020?

Medicare Supplement Insurance, or Medigap, helps pay for certain Part A and Part B out-of-pocket expenses, such as deductibles, coinsurance and copayment.

Starting in 2020, Medigap Plan C and Plan F will no longer be sold to new Medicare beneficiaries.

If you become eligible for Medicare before January 1, 2020, you may still be able to buy Medigap Plan F or Plan C if either is available where you live. If you already have either plan, you can keep it.

Learn more about 2019 Medicare Advantage plans

If you are looking for a 2019 Medicare Advantage plan, a licensed insurance agent can help you compare the benefits, coverage and rates for plans that are available where you live.

 

Find $0 Medicare Advantage plans in your area

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Or call TTY Users: 711 24/7 to speak with a licensed insurance agent.

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1 EveryCRSReport.com. Medicare: Part B Premiums. (Updated April 4, 2019). Retrieved from www.everycrsreport.com/reports/R40082.html.

2 Jacobson, Gretchen; Damico, Anthony; Neuman, Tricia. Medicare Advantage 2019 Spotlight: First Look. (Oct. 16, 2018). Kaiser Family Foundation. Retrieved from www.kff.org/report-section/medicare-advantage-2019-spotlight-first-look-data-note.

3 Cubanski, Juliette; Damico, Anthony; Neuman, Tricia. Medicare Part D in 2018: The Latest on Enrollment, Premiums, and Cost Sharing. (May 17, 2018). Kaiser Family Foundation. Retrieved from www.kff.org/medicare/issue-brief/medicare-part-d-in-2018-the-latest-on-enrollment-premiums-and-cost-sharing.

4 Centers for Medicare and Medicaid Services. 2020 Medicare Advantage Ratebook and Prescription Drug rate information. Retrieved from www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Ratebooks-and-Supporting-Data.html.

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